The 15-year-maturity loan will help fund the construction of the new plant, which was officially opened in April 2010. The plant is expected to generate 52GWh this year and will replace two diesel generators in the town of Sisimiut.

Due to its geography and climate, Greenland is dependent on local electricity production. Until now, the diesel generators have been the only source of electricity for the 6,000 inhabitants of Sisimiut.

“We are pleased to be a contributing factor to the shutting down of the fossil fuel run power station in Sisimiut. The new hydropower plant will silence the polluting diesel generators, leading to improved air quality, lower noise levels, and not least access to more reliable and affordable electricity for the population of Greenland,” says NIB’s President and CEO Johnny Åkerholm.

The Greenland Self Rule Government will on-lend the NIB-loan to the local energy company, Nukissiorfiit.